Daijiworld Media Network – San Francisco

San Francisco, Oct 8: Elon Musk’s artificial intelligence startup XAI is raising $20 billion in fresh financing — double its earlier target — as it secures a major investment from Nvidia Corp. to fuel its ambitious ‘Colossus 2’ data centre project in Memphis, according to reports.

The latest funding round will be structured as a mix of $7.5 billion in equity and up to $12.5 billion in debt through a special purpose vehicle (SPV). The SPV will purchase Nvidia’s high-performance processors and rent them to XAI for a five-year period, allowing financiers to recoup their investment by leveraging the value of the GPUs rather than XAI’s balance sheet.

Nvidia, the world’s leading AI chipmaker, is said to be investing as much as $2 billion in the equity

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